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On strategic community development

Henderson, J. Vernon and Thisse, Jacques-François (2001) On strategic community development. Journal of Political Economy, 109 (3). pp. 546-568. ISSN 0022-3808

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Identification Number: 10.1086/321017


This paper examines strategic behavior of developers who, through offering different congested public‐good packages and revenue/fiscal schemes, compete for residents who are differentiated by income. There is an endogenous determination of numbers and sizes of communities. Developers have an incentive to strongly differentiate their public‐good offerings. In terms of pricing strategies, developers exhibit sharply contrasting behaviors. In low‐income communities, housing consumption is subsidized once lots are priced. In high‐income communities housing consumption is generally taxed.

Item Type: Article
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Additional Information: © 2001 The University of Chicago
Divisions: Geography & Environment
Subjects: G Geography. Anthropology. Recreation > G Geography (General)
H Social Sciences > HB Economic Theory
JEL classification: R - Urban, Rural, and Regional Economics > R0 - General > R00 - General
R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes
Date Deposited: 11 Sep 2013 09:11
Last Modified: 03 Jan 2024 18:12

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